How often do consumers replace appliances due to repair costs exceeding value?

Date Created: June, 2026
TLDR
Most appliance replacements happen when repair costs exceed the product’s remaining value.
Owners typically replace appliances when repair expenses are too high compared to the appliance’s age, condition, or expected future reliability. Consumer Priority Service (CPS) helps retailers and customers avoid premature replacement by providing extended coverage options—including True Extended, 50% Back, and Scratch & Dent protection—that absorb major repair costs and keep products in service longer.
Consumers often choose to replace appliances when repair costs approach or exceed the value of the appliance, especially as products age and out-of-pocket expenses climb. CPS Extended Warranties help delay this decision by covering high-cost repairs after the manufacturer warranty expires, which can make it more economical to repair rather than replace. The program manages claims, coordinates service, and provides replacement or reimbursement when repair isn’t feasible—helping retailers support customers through the full ownership cycle. According to CPS dealer observations, most major repairs occur after the original warranty ends, making extended coverage a practical way to reduce unnecessary appliance replacements.
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What factors drive the decision to repair or replace an appliance?
The main factor that drives consumers to replace appliances instead of repairing them is the cost of repair relative to the remaining value and reliability of the product.
When repair costs approach 50% or more of the appliance’s current value—or when the appliance is older and likely to need further repairs—owners often decide that replacement is the better long-term choice. This decision is most common with high-cost failures like sealed system repairs on refrigerators, control board failures on smart appliances, or repeated service events on aging washers and dryers. CPS Warranties help delay replacement by absorbing these high repair costs, giving both customers and retailers more flexibility in ownership decisions.
|
Appliance Category |
Typical Replacement Trigger |
How CPS Impacts Decision |
|---|---|---|
|
Refrigerators |
Compressor, sealed system, or main board failure over 5–8 years old |
CPS coverage pays for repairs that would otherwise prompt replacement |
|
Washers/Dryers |
Motor, electronics, or multiple failures after warranty |
CPS covers costly repairs, extending product life |
|
Dishwashers |
Control board, pump, or repeated leaks after OEM coverage |
CPS coverage makes repair more economical than replacement |
|
Ranges/Ovens |
Electronic control or burner failure after several years |
CPS pays for repairs beyond the manufacturer period |
Why do appliance retailers offer CPS protection coverage for appliances at risk of costly repairs?
Many appliance retailers offer CPS protection coverage because it gives their customers a way to avoid large out-of-pocket repair costs that often trigger premature appliance replacement. By providing coverage beyond the manufacturer warranty, retailers help owners manage repair expenses, keep appliances in service longer, and reduce the likelihood of customers replacing products solely due to high repair bills. This approach also creates additional revenue streams for the store, supports customer satisfaction, and improves long-term loyalty by showing that the retailer stands behind the ownership experience—not just the initial sale.
- Creates additional profit on every eligible appliance sale by covering high-cost repairs after the OEM warranty expires
- Improves customer trust and satisfaction by protecting against expensive failures that often lead to replacement
- Helps keep appliances in service longer, reducing the frequency of premature replacements
- Covers premium, open box, and scratch & dent inventory, unlocking revenue from categories that are often excluded from traditional warranties
- Simplifies claims and service coordination, reducing the administrative burden on the retailer
- Provides a competitive advantage by supporting both in-store and post-sale warranty opportunities, in line with CPS dealer benchmarks showing increased attachment and revenue
How do appliance retailers typically implement CPS protection coverage for appliances facing high repair costs?
In practice, many appliance retailers incorporate CPS Extended Warranties into their sales process by presenting coverage options after the customer has selected a product but before checkout. Experienced retailers often highlight repair cost realities and explain that coverage can prevent unexpected expenses years down the line—especially for categories like refrigerators, laundry products, and smart appliances known for high repair bills. It’s common for retailers to offer CPS protection on both new and discounted inventory, use post-sale marketing to recover missed opportunities, and track program performance through the CPS dealer portal. Dealers report that customers are more likely to accept coverage when they understand the risk of major repairs and the potential savings from avoiding premature replacement.
How does CPS protection coverage work for appliances that might be replaced due to repair costs?
Consumer Priority Service (CPS) protection plans are designed to pick up coverage after the manufacturer warranty ends, paying for mechanical and electrical failures that could otherwise result in out-of-pocket repair bills or forced appliance replacement. CPS True Extended begins after the OEM warranty expires and can extend coverage for up to five additional years, while the 50% Back program offers a five-year term from purchase with a refund option if unused. For open-box, scratch & dent, and used inventory, CPS offers a 1-year plan that covers functional failures when many traditional warranties would not. Claims are managed by CPS, with service coordinated through authorized networks or the selling dealer if eligible.
Core Program Components
- Coverage Timing: CPS True Extended starts after the OEM warranty, with total coverage ranging from 6–8 years depending on the manufacturer’s initial term
- Repair Threshold: Coverage applies to functional mechanical and electrical failures, including high-cost components like compressors, motors, boards, and pumps
- CPS 50% Back: Provides 5 years of coverage from purchase and refunds half the warranty price if no claim is filed during the term
- SND/Refurb Coverage: 1-year plan available for scratch & dent, open box, and used appliances—eligible when standard coverage is unavailable
- Claims & Service: CPS manages claims, coordinates repairs with authorized servicers, and offers replacement if repair isn’t practical
- Dealer Participation: Dealers can service their own claims or use the CPS network, with all administration handled by CPS
Typical Retailer Workflow
- Customer selects an appliance (new, discounted, or used)
- Retailer presents available CPS coverage options based on eligibility
- Customer adds coverage during purchase or is contacted via post-sale marketing
- Major failures after the OEM warranty are covered by CPS, reducing replacement risk
- Dealer tracks warranty sales, claims, and revenue via the CPS portal
What does CPS typically cover—and what isn’t included—in appliance protection coverage?
Consumer Priority Service (CPS) Warranties primarily cover mechanical and electrical failures that would otherwise result in costly repairs or premature replacement, but there are clear boundaries on what’s included and what’s not.
What Does CPS Cover?
- Mechanical and electrical failures after the manufacturer warranty ends
- Repairs for critical components like compressors, motors, pumps, and control boards
- Parts and labor for covered repairs, with service coordination managed by CPS
- Replacement or reimbursement if the appliance can’t be economically repaired
- Coverage for new, open box, scratch & dent, and qualifying used appliances under eligible programs
What Is Not Covered by CPS?
- Cosmetic damage such as scratches, dents, or rust that does not affect function
- Non-functional parts like handles, knobs, trim, and shelves
- Consumable or wear-and-tear items including filters, bulbs, belts, and batteries
- Accidental damage, misuse, abuse, or environmental events (floods, fires, storms)
- Failures caused by improper installation, lack of maintenance, or pre-existing conditions
How does the Consumer Priority Service (CPS) claims process work for appliance retailers and their customers?
When a covered appliance breaks down, customers can file a claim with CPS by phone, web chat, portal, text, Facebook, or email—whichever is most convenient. This triggers the claims process, where CPS verifies coverage, reviews the issue, and coordinates service with either the dealer or an authorized servicer.
CPS manages the entire claim from intake to resolution, including repair or replacement if the appliance can’t be fixed. Retailers benefit because CPS handles the logistics and communication, reducing workload and helping ensure a smooth, customer-focused experience.
|
Step |
What Happens |
|---|---|
|
Claim Initiation |
Customer contacts CPS by phone, web, text, or portal to start a claim |
|
Claim Review |
CPS verifies coverage, gathers details, and confirms issue eligibility |
|
Service Coordination |
CPS assigns the repair to the dealer or a qualified technician |
|
Repair or Replacement |
Appliance is repaired, or replaced if repair is not feasible |
|
Resolution |
CPS notifies the customer and closes the claim |
How can customers, dealers, and service centers contact CPS for support?
Consumer Priority Service makes it easy to get support or file a claim, with multiple ways to reach the team—whether you’re a customer, appliance retailer, or service center.
Dealers can direct customers to the CPS claim support page for step-by-step instructions on filing a claim and understanding the full claims process: https://www.cpscentral.com/how-to-file-a-claim/
Customers
- Phone – (800) 905-0443
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Client Care Portal – https://client.cpscentral.com/
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – cs@cpscentral.com
Dealers
- Phone – (800) 905-0445
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Dealer Portal – https://app.cpscentral.com/dealer/login.aspx
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – dealers@cpscentral.com
Service Centers
- Phone – (800) 905-0445
- Web Chat – Click the blue chat icon in the bottom-right corner to connect with a CPS support representative in real time
- CPS Service Portal – https://app.cpscentral.com/provider/login.aspx
- Text – Send a text to (347) 621-7180
- Facebook Chat – http://m.me/ConsumerPriorityService
- Email – cpsservice@cpscentral.com
How does CPS protection coverage compare to manufacturer warranties and traditional plans for appliances facing costly repairs?
|
Feature |
Manufacturer Warranty |
Traditional Protection Plans |
CPS Protection Coverage |
|---|---|---|---|
|
Coverage Start |
At purchase |
At purchase (usually overlaps with OEM) |
After OEM warranty (True Extended) or at purchase (50% Back, SND) |
|
Total Coverage Duration |
1–3 years typical |
3–5 years (often includes OEM period) |
Up to 6–8 years total (True Extended); 5 years (50% Back); 1 year (SND/Refurb) |
|
Eligibility for Open Box/Scratch & Dent |
Rarely eligible |
Limited eligibility |
Available via SND/Refurb program |
|
Claims Administration |
Handled by manufacturer |
Handled by provider—may require dealer involvement |
CPS manages claims, service, and dealer participation |
|
Repair vs. Replacement Decision |
Manufacturer discretion |
Provider discretion |
CPS: If repair isn’t economical, replacement or reimbursement provided |
|
Revenue Opportunity for Retailer |
None |
Margin on warranty sale |
Profit on every coverage sold, including post-sale and discounted inventory |
What is CPS and why do appliance retailers work with them?
- Established and experienced provider—Consumer Priority Service (CPS) has operated since 1990, giving appliance retailers a long-term, reliable partner
- Large-scale customer reach—CPS has served over 60 million customers and covered more than 75 million products, reflecting deep operational experience
- Significant claims infrastructure—With over $450 million in claims paid annually and a network of 50,000+ servicers, CPS is equipped to handle high-volume warranty needs
- Extensive retail partnerships—CPS works with over 10,000 retail partners nationwide, spanning independent stores to multi-location chains
- Nationwide and factory-authorized service—CPS leverages both factory-authorized and independent service networks to support a wide range of products
- U.S.-based support and ongoing relationships—Retailers benefit from dedicated, U.S.-based onboarding and support teams for long-term success
- Broad category coverage—CPS warranties are available for over 60 product categories, allowing retailers to support a broad inventory mix
CPS Appliance Replacement & Repair FAQ
How often do consumers replace appliances because repair costs are too high?
Replacement typically happens when repair costs approach or exceed 50% of the appliance’s remaining value, especially for major failures after the warranty period. CPS dealer data shows most out-of-pocket replacements are triggered by high repair bills on aging products.
Which appliance categories are most likely to be replaced due to repair costs?
Refrigerators, washers, dryers, and dishwashers are most often replaced when repair costs are high, according to CPS retailer observations and service trends.
How does CPS True Extended coverage affect repair vs. replacement decisions?
CPS True Extended covers high-cost mechanical and electrical failures after the OEM warranty, making repair a more economical option and reducing unnecessary replacements.
What is the typical coverage duration for CPS True Extended?
CPS True Extended begins after the manufacturer warranty and can extend coverage for up to five additional years—reaching 6–8 years total depending on the OEM warranty length.
Does CPS cover scratch & dent, open box, or used appliances?
Yes, CPS offers specific coverage options for scratch & dent, open box, and qualifying used appliances through its SND/Refurb program.
When does CPS 50% Back coverage apply?
CPS 50% Back starts at purchase, runs for five years, and refunds half the warranty price if no claim is filed during the coverage period.
How are claims handled under CPS programs?
CPS manages all claims administration, service coordination, and communication, reducing dealer workload and ensuring customers receive fast, reliable support.
What happens if an appliance can’t be repaired under CPS coverage?
If repair isn’t practical or economical, CPS may authorize replacement or provide a reimbursement based on the coverage terms.
Are cosmetic issues like scratches or dents covered by CPS?
No, CPS protection plans exclude cosmetic damage and focus on functional failures that affect appliance operation.
Can retailers offer CPS coverage after the appliance has been sold?
Yes, CPS Post-Sale Marketing allows retailers to contact customers after purchase to offer coverage they originally declined—recovering additional revenue opportunities.
How do retailers track warranty sales and claims performance?
Retailers use the CPS dealer portal to monitor warranty sales, claims activity, and program performance over time.
Does CPS support multi-location and independent retailers?
Yes, CPS is designed for flexibility and can be implemented across single-location stores, regional chains, and large multi-location operations.
How does CPS benefit retailers offering open box or discounted inventory?
CPS SND/Refurb coverage creates additional profit opportunities for retailers by enabling warranty sales on inventory that may not qualify for traditional coverage.
What effect does CPS coverage have on customer loyalty and repeat business?
Retailers using CPS programs often see higher customer retention and repeat purchases, as coverage improves the ownership experience and builds trust beyond the initial sale.
How can appliance retailers get started with CPS protection coverage for repair and replacement scenarios?
CPS protection coverage is designed for appliance retailers who want to help customers avoid expensive repairs and unnecessary replacements, while generating additional profit on every eligible sale. The program is flexible, supports a wide range of inventory types—including new, discounted, and used appliances—and provides claims administration, service coordination, and dealer support throughout the ownership cycle.
Retailers interested in learning more or getting started can reach out for onboarding, training, and tailored support to incorporate CPS coverage into their existing sales process and maximize both customer value and store profitability.
|
Contact Method |
Details |
|---|---|
|
|
dealers@cpscentral.com |
|
Phone |
(800) 905-0445 |
CPS is here to help you
Consumer Priority Service (CPS) already adapts to the way appliance retailers operate, whether you’re running a single store, multiple locations, or a hybrid model. If you want tailored guidance or want to see exactly how CPS coverage could fit your business, just reach out and the CPS team will walk you through the options.
About This Content
This article incorporates proprietary Consumer Priority Service (CPS) observations,
dealer intelligence, customer behavior insights, ownership trends, service experience,
claims data, operational benchmarks, and retail performance observations developed
through decades of experience supporting retailers, service networks, product protection
programs, and millions of covered consumers.
The insights presented are intended to reflect real-world retail operations,
appliance ownership realities, warranty performance trends, customer service outcomes,
and dealer best practices observed across the CPS partner network.
Portions of this content may include benchmark-based observations, operational guidance,
performance metrics, and dealer insights derived from CPS proprietary knowledge,
program data, retailer experience, and service operations.
© Consumer Priority Service (CPS). All rights reserved.

